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Tuesday, June 7, 2022

Big Data Analytics and The Benefits for Marketing

 Chapter 1

Introduction

In this paper We will discuss about big data analytics and elaborate why marketing need big data and analytics. In the beginning, we will get understanding about big data analytics, some characters of big data, and the benefit of big data analytics for marketing.

Key Words: Big Data, Analytics, The Characteristic of Big Data, The Benefit of Big Data analytics for Marketing

Chapter 2

Big Data 

Big Data is everywhere these days, whether in the form of structured data, such as organizations traditional databases (e.g., customer relationship management) or unstructured data, driven by new communication technologies and user editing platforms (e.g., text, images and videos) (Lansley & Longley, 2016).  “Big data can be defined as data sets whose size or type is beyond the ability of traditional relational databases to capture, manage and process the data with low latency. Big Data has been described by some Data Management pundits (with a bit of a snicker) as “huge, overwhelming, and uncontrollable amounts of information.” (Foote, 2017)

Picture 2.1
Illustration 


Source:https://growthmarketinggenie.com

Big data is characterized by some elements, according to (Amadoa, Cortez, Rita, & Moro, 2017), (Laney, 2001) mentioned  about the 3 Vs in Big Data management: Volume, Variety, and Velocity. Recently, two more Vs were included onto the Big Data equation: Variability, and Value. Gartner summarizes these five dimensions in its definition of Big Data in 2012 as “high volume, velocity and variety information assets cost-effective demand, innovative forms of information processing for enhanced insight and decision making” (Fan & Bifet, 2013). So, it started in the year 2001 with 3 V’s, namely Volume, Velocity and Variety. Then Veracity got added, making it 4 V’s. Then Value got added, making it 5V’s. Later came 8Vs, 10Vs etc (Guttta, 2020). In this paper We will elaborate to 5 characteristics below:

Picture 2.2
The 5’V Characteristic of Big Data
Source : https://medium.com/analytics-vidhya

Volume: The term big data signifies a large quantity of data. It is about the large amounts of data that is received and processed. If in the past before the digital /internet era data was only produced by humans, now data is also generated by machines along with the IOT era (internet of Things). Human and network interaction in systems such as social media makes the data that must be analyzed very large (Wibowo, 2018). So, the rapidly increasing volume data is also due to cloud-computing traffic, IoT, mobile traffic etc. (Guttta, 2020). Below is the estimated/predicted global data growth until 2025:

Picture 2.3
Predicted Global Data Growth
Source: https://medium.com/analytics-vidhya

Variety: Very diverse data sources be it structured or unstructured data. (if it used to be only in the form of spreadsheets and data bases, now it is also in the form of images, audio, video etc.)
Velocity: Velocity refers to data speed (how fast data can be generated and can be processed and analyzed to meet a need). Currently, the data flow has exploded in size and frequency. Researchers and enterprises can use this real-time data to deliver up-to-date insights for decision-making. In the year 2000, Google was receiving 32.8 million searches per day. As for 2018, Google was receiving 5.6 billion searches per day! (Guttta, 2020).  
Validity: Data discrepancies might emerge at any time, obstructing the process of properly processing and managing data.
Veracity: Data veracity refers to the quality of data that is to be analyzed. Data quality is determined by a number of factors, including where the data was obtained, how it was acquired, and how it will be analyzed. The authenticity of a user's data determines how trustworthy and significant the information is.

Chapter 3
Big Data Analytics

Big data analytics assists businesses in leveraging their data and identifying new opportunities. Data analysis is the process of examining raw unstructured data in order to draw conclusions, make prediction find the trends and answer the questions (Valcheva, 2022). As a result of the analytics, smarter business decisions are can be made and the impact then are: operations are more efficient, consumers are happier because the business offer the high value and ultimately profitable is increasing. 

Picture 3.1
The main Benefit of Big Data Analytics

Source: https://www.sas.com/id_id/insights

According to (Davenport & Dyche, 2013) In their report Big Data in Big Companies, IIA Director of Research Tom Davenport interviewed more than 50 companies to understand how they use big data. He found that these companies gained value in the following ways:

1. Cost reduction.  Big data technologies like Hadoop and cloud-based analytics bring significant cost advantages when it comes to storing large amounts of data – plus they can identify more efficient ways of doing business.
2. Faster, better decision-making.  With the speed of Hadoop and in-memory analytics, combined with the ability to analyze new data sources, companies can analyze information immediately – and make decisions based on what they have learned.
3. New products and services.  With the ability to measure customer needs and satisfaction through analytics, comes the power to deliver what customers want. Davenport points out that with big data analytics, more companies are creating new products to meet customer needs.

Chapter 4
Big Data Analytics for Marketing

We'll look at the benefits of Big Data Analysis for marketers and marketers in this chapter. In general, a marketer's ability to use or optimize big data analysis in generating marketing insight will aid marketing in gaining a better understanding of the market and making sound strategy or decisions that will lead to the company providing high value to its customers and ultimately winning the market.

Some of the benefits of utilizing big data analysis in detail are conveyed by (Valcheva, 2022) as follows:

1. Data Is The Key To Behavior Analysis,
A customer behavior analysis is an examination of how customers interact with your business (including your brands, websites, products, applications, etc.) Purchased products, page visits, email sign-ups, ad clicks, and other user activities are examples of behavioral data. Websites, CRM systems, call centers, marketing automation systems, and billing systems all provide behavioral data.

2. Data Make Conversational Marketing Possible
Real-time interactions are used in conversational marketing to increase engagement, client loyalty, and revenue. In conversational marketing, big data analytics allows you to have a better understanding of your customers. Furthermore, big data adds a "listening" component to conversational interfaces (such as chatbots and live conversations). The example of data-driven conversational marketing software and chatbot platforms are: Drift, Intercom, MobileMonkey, Botsify, ChipBot, Aivo.

Picture 4.1
Botsify and ChatBot Platform


Source: Google.com

3. Data Make Predictive Analytics Truly Effective
Predictive analytics is the use of data algorithms and techniques to define the likelihood of future events or results based on historical data as past customer behavior and habits. It enables marketers to identify future risks and opportunities and thus to make the most effective data-driven decision-making process.

Some examples of  predictive analytics software: IBM Predictive Analytics, Optimove, NGData, SAP Predictive Analytics, Dataiku DSS, AgilOne

Picture 4.2
IBM and SAP Predictive Analytics


Source: Google.com

4. Data Revolutionize Digital Marketing
Big data offer big insights into any of the digital marketing type or platform (SEO,Pay-Per-Click Advertising, Native Advertising, Social Media Marketing, Email Marketing, Mobile Phone marketing, Affiliate Marketing, Inbound Marketing, Influencer Marketing). It is impossible to set the right strategy, to make content, to set digital advertising without the insight about the target market/audience from Big Data Analysis.

Picture 4.3
Digital Marketing Type/Platform


Source : https://www.dhadigital.com

Some digital marketing software: Engagebay, BrightEdge, MarketMuse, Vennli : 

Picture 4.4
Digital Marketing Software examples 



Source: Google

5. Data Build Up Personalization
Customer behavior and patterns can be better understood with data analytics software, which allows you to customize recommendations for each purchase. This enables purchasers to make quick and easy purchasing decisions. To eliminate buyer friction and boost the amount and quality of qualified leads in their funnel, marketers utilize data analytics solutions for personalization.

Marketing personalization can be different types such as: targeted ads, personalized emails, product recommendations, dynamically changing websites, targeted notifications, etc (Valcheva, 2022). Some marketing personalization software: PathFactory, Dynamic Yield, Recombee, LiftIgniter, Segment, Yusp, Evergage, BrightInfo.

Picture 4.5
Data Build up Personalization software

Source: Google.com

6. Data Transform Market Research
In today's high-tech, hyper-connected world, traditional market research is no longer relevant. Big data Analytics with some software will help marketer gain the insight about the market/customer such as their lives, values, preferences, attitude, behavior . Some data-driven market research software: Question Pro Locus, SurveySparrow, Response-ai, Qualtrics, SmartReader, FocusVision.

Picture 4.6
SmartReader & Qualtrics

Source: Google.com

Chapter 5
Conclusions

The use of big data analysts to generate insights that support business and marketing decisions is a strategic step at a time when the advancement of the digital era can no longer be contained (which is characterized by an abundance of data and the increasing need for data to support every business decision, including in supporting digital marketing activities. The digital era and big data have also made the power of data increasingly affect the ability of businesses to be more competitive in the industry.

One condition that benefits the company or marketing is that we do not have to manage the data alone and look for insights but can take advantage of consulting services and application providers according to our business needs or marketing goals.


References

Amadoa, A., Cortez, P., Rita, P., & Moro, S. (2017). Research Trends on Big Data in Marketing: A Text Mining and Topic Modeling Based Literature Analysis. European Research on Management and Business Economics. Vol.24, 1-7.

Davenport, T., & Dyche, J. (2013). SAS Website. Retrieved from https://www.sas.com: https://www.sas.com/id_id/insights/analytics/big-data-analytics.html

Fan, W., & Bifet, A. (2013). Mining Big Data: Current Status, and Forecast to The Future. ACM sIGKDD Explorations Newsletter Vol.14 (2), 1-5.

Foote, K. D. (2017, December 14). Dataversity. Retrieved from https://www.dataversity.net: https://www.dataversity.net/brief-history-big-data/#

Guttta, S. (2020, May 04). Medium Website. Retrieved from https://medium.com: https://medium.com/analytics-vidhya/the-5-vs-of-big-data-2758bfcc51d

IBM. (2021). IBM website. Retrieved from www.ibm.com: https://www.ibm.com/analytics/big-data-analytics

Laney, D. (2001). 3D Data Management: Controlling Data Volume, Velocity, and Variety. META Group Research Note. Vol.6, 70-73.

Lansley, G., & Longley, P. (2016). Deriving Age and Gender from Forenames for Consumer Analytics. Journal of Retailing and Consumer Services . Vol.30, 271-278.

Valcheva, S. (2022). Intellspot. Retrieved from https://www.intellspot.com: https://www.intellspot.com/data-analytics-marketing

Wibowo, A. (2018, June 28). BINUS University : Master of Information Technology. Retrieved from https://mti.binus.ac.id: https://mti.binus.ac.id/2018/06/28/2222/

 







Monday, June 6, 2022

Quantitative Research and Three Type of Basic Quantitative Research

Chapter 1

Introduction

Learning and understanding of the quantitative method is very important for us as communication students and scholars. In this weekly discussion I will explain what the quantitative method is (including its differences with qualitative research) and explain the three types of basic quantitative methods (and give some example of the title research or article in journal for each of those types). 

Key words: Quantitative Research, Types of Quantitative Research, The Example of Title Research, Comparison for Each Types of Research

Chapter 2

Quantitative Method: An Introduction

Quantitative research is a research method based on the philosophy of positivism, which is used to examine certain populations or samples, which are generally random sampling, and data is collected using research instruments, then analyzed quantitatively / statistically with the aim of testing predetermined hypotheses (Sugiyono, 2010). While according to (Creswell, 2014) Quantitative research is an approach for testing objective theories by examining the relationship among variables. These variables, in turn, can be measured, typically on instruments, so that numbered data can be analyzed using statistical procedures.

“Quantitative approaches focus on objective measurements and statistical, mathematical, or numerical analysis of data acquired through polls, questionnaires, and surveys, as well as modifying pre-existing statistical data using computing techniques. Quantitative research is concerned with collecting numerical data and generalizing it across groups of people or explaining a phenomenon (Babbie, 2010) (Muijs, 2010)”

Quantitative research is widely used in research in the natural sciences although it is also currently starting to be used in social research. This is because its scientific nature and objectives are highly emphasized. 

To understand the quantitative methods below are the main characteristic of quantitative methods (Babbie, 2010) (Creswell, 2014) :

1.     The data is usually gathered using structured research instruments.

2.     The results are based on larger sample sizes that are representative of the population.

3.     The research study can usually be replicated or repeated, given its high reliability.

4.     Researcher has a clearly defined research question to which objective answers are sought.

5.     All aspects of the study are carefully designed before data is collected.

6.     Data are in the form of numbers and statistics, often arranged in tables, charts, figures, or other non-textual forms.

7.     Project can be used to generalize concepts more widely, predict future results, or investigate causal relationships.

8.     Researcher uses tools, such as questionnaires or computer software, to collect numerical data.

As for being able to distinguish it from qualitative research, the following below is the character of qualitative research compared to quantitative research:

Source: http://shayaaresearch.blogspot.com/2011/04/qualitative-vs-quantitative-research

Meanwhile, between quantitative and qualitative research is also explained by (Neuman, 2003) as follows:

Criteria

Quantitative Method

Qualitative Method

Research guide frame

Hypothesis, tested

Find the meanings

Concept

Found from different variables

It is found in themes, motifs, generalizations and taxonomy.

Measurement

Systematic; carried out before data collection; standardized.

Done separately; individual according to the setting of the researcher.

Data

In the form of numbers; precision.

In the form of text, images; derived from documents, observations and transcripts.

Theory

Very decisive; Deductive.

It can be decisive or not so decisive; often inductive.

Procedure

Standard

Special

 

Using statistics, tables, diagrams; related to hypotheses.

It is done by extracting themes or generalizing from the evidence of findings and organizing data to find data coherence and consistency.


Source: Lawrence W. Neuman (2003) Social Research Methods: Qualitative and Quantitative Approaches, Fifth Edition. Boston: Pearson Education Inc, page. 145.

The difference between quantitative research and qualitative research can also be seen below, according to (Kuswandoro, 2015):

Criteria

Quantitative Method

Qualitative Method

Research objectives

Testing the theory

Building, critiquing theories

Paradigm

Positivism

Non positivism: post-positivism, critical.

Sensing of social reality

Toughness, has a natural diversity, can be observed, can be measured, can be conceptualized, perceived.

It has no weight, mystery, it is not always apparent, it needs to be dug deeper.

Observation of Facts

Variable

Situation.

Representation of facts

Numeric (numbers)

Non-numerical (text).

Mindset

Deductive

Inductive.

Research flow

Linier

non-linier.

Pattern (process) of research

There is no novelty; standard; Mechanical

There's always something new; unique (different from each researcher).

The role of theory

Central, dominant, tight

Not central, not dominant but still necessary.

Theory functions

Frame the researcher strictly.

Guiding the researcher at the starting point, next the researcher understands social reality naturally.

The nature of the research results

Macros; explaining the phenomenon that appears to be on the surface.

Profound, explaining the phenomenon to "behind reality".

Point of view

Researcher’s point of view

Native’s point of view

The nature of the method

Static, rigid

Dynamic, flexible.

Relation to Object / Subject (O / S) Research

To put distance

Close, interactive.

O/S Research

Respondent

Informants, interviewees

O/S Research Selection

Random (simple random sampling, stratified sampling, multi-stage random sampling)

Selected, based on the qualifications and proximity of the informant to the problem under study; snow-ball.

Data collection

Direct or indirect interview (post, internet)

Face-to-face in-person interviews, in-depth interviews.

Instruments

Questioner

Interview guide.

The nature of the question

Structured

Semi-structured, unstructured, open-ended questions.

The nature of the analysis

Numerical, mathematical, statistical

Reflective, interpretive, praxis.

Analysis tools

Statistical

Analytical acumen and researcher instincts.

 Assistive software

SPSS, AMOS, etc.

CDC EZ Text, NVivo

Validity

Sample size, number of respondents (reducing the margin of error).

The number of informants is not important, the most important thing is the depth of the data, the quality of the informants.

The nature of the results

Value-free.

Not value-free; praxis.

Researcher's position

Beyond O/S research.

Joint O/S research; bricoleur.

Debilitation

Failing to explain the real phenomenon; the respondent can give an answer that is not true.

Vulnerable to bias of researchers due to the researcher's proximity to the O/S of the study.

Research examples

Surveys, experiments, correlations, descriptive, comparative, etc.

Ethnography, phenomenology, cultural studies, case studies, hermeneutics, Critical Discourse Analysis, etc.


Source: (Kuswandoro, 2015)

Chapter 3
Three Types of Basic Quantitative Methods

Quantitative research comes in a variety of forms. Understanding the many sorts of study is critical for a researcher. Choosing or settling on the suitable form of quantitative research design is critical for a researcher because it will affect several aspects in the research, including suitability with the research objective, and methodology (especially in the data collection phase).

We can find a wide variety of approaches in grouping types of quantitative research, from the simplest grouping (Exploratory and conclusive research), four types of quantitative design research (such as descriptive, correlational, causal-comparative, and experimental experimental research), to seven groups of quantitative.  

In this paper I would like to explain the categorization into 3 types of quantitative research according to (Nurhajati, 2022) :

1. Exploratory Research

Exploratory research is conducted to learn more about a topic, issue, or problem in more depth. This research is usually done when the scope of the study is uncertain/unclear or overly wide or too broad. It is a good starting point to get familiarized with some insights and ideas (Nurhajati, 2022).

An exploratory research tries to look into a problem that hasn't been properly investigated or hasn't been studied before. The goal of this exploration study request is to gain a deeper knowledge of an existing problem; however, the outcomes are rarely conclusive.

Here is some example of title research (journal) in exploratory research:
1. How cartoon characters and claims influence children’s attitude towards a snack vegetable – An explorative cross-cultural comparison between Indonesia and Denmark (Valerie Hémar-Nicolas, 2021).
2. The Fight Against Hoax: An Explorative Study towards AntiHoax Movements in Indonesia (Nurlatifah, 2019)
3. How nurse express their caring behavior to patients with special needs (Nurachmah, 2001)

Picture 3.1
Illustration
Source: Google.com

2. Descriptive Research

Descriptive method research conveys facts by describing from what is seen, obtained, and perceived.  In this descriptive method Researchers simply write down or report the results of their eye view reports in journalistic language, simply describing the subject of the object under study without engineering or something (Creswell J. , 2012).
     
Descriptive research is typically performed to explain an occurrence or an event that requires precise facts. When discussing the population of a country, for example, we will debate population data based on gender, population growth trends, population density, and so on.

In descriptive research, there are 5 types of descriptive research: case studies, case series studies, cross-sectional, longitudinal, retrospective (worldsustainable.org, 2020).

Here is some example of title research (journal) in descriptive research:
1. A Study of Landslide Areas Mitigation and Adaptation in Palupuah Subdistrict, Agam Regency, West Sumatra Province, Indonesia (Oktorie, 2017)
2. The development of corporate social responsibility in accounting research: evidence from Indonesia (Gunawan & Setin, 2018)
3. Evaluation of Online-Based Student Learning: Models During New Normal Pandemic Covid-19 in Indonesia (Siswati, Astiena, & Savitri, 2020)

Picture 3.2
Illustration


Source: Google.com

3. Causal Research

Causal research is a form of study that seeks to establish a causal link between variables. We need to figure out which variables are causal and which are causative in this investigation. The statistical procedure itself will reveal and uncover this causal relationship (Creswell J. , 2012).

Usually, we refer to causal variables as independent variables and effect variables as dependent variables (worldsustainable.org, 2020). In the causal research we can classify into: experimental research and quasi-experimental research.

Here is some example of title research (journal) in causal research:
1. Income Shocks and Suicides: Causal Evidence from Indonesia (Christian, Hensel, & Roth, 2018)
2. The Effect of The Effectiveness of Collecting Duties on The Acquisition of Land and Building Right (BPHTB) on The Original Income of The Region with The Number of Inhabitants as A Moderating Variable (Rizkina, 2019)
3. The Effect of Internal Audit Quality on Financial Accountability Quality at Local Government (Zeyn, 2018)

The differences between these three types of quantitative research can also be understood through the explanation by (Zikmund, Babin, Carr, & Griffin, 2012) below:

Figure 3.3

Variable

Exploratory research

Descriptive research

Causal research

Amount of uncertainty characterising decision situation

Highly ambiguous

Partially defined

Clearly defined

Key research statement

Research question

Research question

Research hypotheses

When conducted?

 

Early stage of decision making

Later stages of decision making

Later stages of decision making

Usual research approach

 

Unstructured

Structured

Highly structured

Variable

Exploratory research

Descriptive research

Causal research

Examples

‘Our sales are declining for no apparent reason’

 

‘What kinds of new products are fast-food consumers interested in?’

‘What kind of people patronize our stores compared to our primary competitor?’

 

‘What product features are the most important to our customers?’

‘Will consumers buy more products in a blue package?’

 

‘Which of two advertising campaigns will be more effective?’


Source: (Zikmund, Babin, Carr, & Griffin, 2012)

Chapter 4
Conclusion

Quantitative research has many types of research. It is important for a researcher to understand these types of research comprehensively so as to help researchers also in coming up with research ideas, research objectives as well as getting a complete picture of supporting research methods, especially in the data collection process (sampling methods used and others). A comprehensive understanding helps researchers design a study that has elements of research that support each other and are appropriate so as to help improve the quality of research. 

References

Babbie, E. R. (2010). The Practice of Social Research. 12th Ed. Belmont: Wadsworth.

Christian, C., Hensel, L., & Roth, C. (2018). Income Shocks and Suicides:. Libs-Publication.

Creswell. (2014). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches 4th ed. New York United State of America: SAGE.

Creswell, J. (2012). Educational Research: Planning, Conducting, and Evaluating Quantitative Research 4th ed. United state of America: Pearson Education.

Gunawan, J., & Setin. (2018). The Development of Corporate Social Responsibility in Accounting Research: Evidence from Indonesia. Social Responsibility Journal. Volume 15 No.5, 671-688.

Kuswandoro, W. (2015, October 09). WK Wawan Kuswandoro FISIP Universitas Brawijaya . Retrieved from http://wkwk.lecture.ub.ac.id: http://wkwk.lecture.ub.ac.id/2015/10/perbandingan-penelitian-kuantitatif-dan-kualitatif/

Muijs, D. (2010). Doing Quantitative Research in Education with SPSS.2 Edition. London: SAGE Publications.

Neuman, L. W. (2003). Social Research Methods: Qualitative and Quantitative Approaches. Fifth Edition. Boston: Pearson Education.

Nurachmah, E. (2001). How Nurse Express Their Caring Behavior to Patiens with Special Needs. Jurnal Keperawatan Indonesia.

Nurhajati, L. (2022). Quanitative Research. Jakarta: LSPR .

Nurlatifah, M. (2019). The Fight Against Hoax : An Explorative Study towards Anti Hoax Movements in Indonesia. Jurnal Komunikasi Ikatan Sarjana Komunikasi Indonesia, 46-54.

Oktorie, O. (2017). A Study of Landslide Areas Mitigation and Adaptation in Palupuh Subdistrict, Agam Regency, West Sumatera Province, Indonesia. Sumatra Journal of Disaster, Geography and Geography Education. Volume 01.

Rizkina, M. (2019). PENGARUH EFEKTIVITAS PEMUNGUTAN BEA PEROLEHAN HAK ATAS TANAH DAN BANGUNAN (BPHTB) TERHADAP PENDAPATAN ASLI DAERAH DENGAN JUMLAH PENDUDUK SEBAGAI VARIABEL MODERATING. Jurnal Perpajakan Volume 01 No.01, 80-94.

Siswati, S., Astiena, A., & Savitri, Y. (2020). Evaluation of Online-Based Student Learning: Models During New Normal Pandemic Covid-19 in Indonesia. Journal of NonFormal Education. Volume 6 No.2.

Sugiyono. (2010). Metode Penelitian Kuantitatif Kualitatif dan R&D. Bandung: Alfa Beta Bandung.

Valerie Hémar-Nicolas, H. P. (2021). How Cartoon Characters and Claims Influence Children's Attitude towards an Snack Vegetable-An Explorative Cross Cultural Comparison between Indonesia and Denmark. Food Quality and Preference volume 87.

worldsustainable.org. (2020, May 31). World Sustainable : Keep The World Sustainable. Retrieved from https://worldsustainable.org: https://worldsustainable.org/types-of-quantitative-research/

Zeyn, E. (2018). The Effect of Internal Audit Quality on Financial Accountability. Research Journal of Finance and Accounting. Volume 09 No.1, 34-43.

 


Consumer Decision-Making Process (Case: high involvement purchases)

Chapter 1 Introduction In this paper we will discuss about the consumer decision-making process especially for high involvement purchases   ...